Brad Garlinghouse: SEC Will Lose War Against Ethereum

The CEO of Ripple suggested that the US Securities and Exchange Commission (SEC) will fail in its attempts to classify ether as a security.

Brad Garlinghouse believes that the SEC has long been at war with the crypto industry. But lately the regulator has been losing in courts more often. Now the department is fighting with other government agencies, including the US Commodity Futures Trading Commission (CFTC).

The head of Ripple spoke in response to a statement by the general counsel of the American crypto exchange Coinbase, Paul Grewal, that the status of ether is not in doubt. After all, other agencies, including the CFTC, consider this altcoin a commodity. Grewal accused the SEC of creating flimsy excuses for refusing to approve applications to launch ether-linked spot ETFs.

Recently, even former CFTC Commissioner Brian Quintenz criticized the SEC's position, saying that the SEC creates regulatory confusion.

“I wonder at what point the SEC will realize that it will lose the war against ETH the same way it failed against XRP?” Garlinhouse wrote in X.

We are talking about the ongoing litigation between Ripple and the Securities Commission. At the end of 2020, the SEC accused Ripple of conducting an illegal ICO, claiming that XRP was an unregistered security. However, in July 2023, Ripple won a partial victory – the Southern District of New York court ruled that XRP sold on the secondary market are not considered investment contracts.

Recently, Brad Garlinghouse stated that the emergence of spot exchange-traded funds tied to XRP is inevitable. The CEO of Ripple believes that ETFs for different cryptocurrencies will help diversify risks.

Source: Cryptocurrency

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